Solar Power Energy

With the target set for 450GW by 2030, the Government of India is encouraging adoption of solar energy. The present status for financing a Solar Rooftop project consists of CAPEX and RESCO model. The CAPEX model allows the customer to either pay 100% upfront or take up a loan where the customer must make regular payments to the bank at a rate of interest. In the RESCO model a third party company finances, installs, operates and maintains the rooftop solar installation. An agreement is reached between the third party and customer for the consumption of generated solar energy. The RESCO model offers savings as the solar energy tariff is usually lower than the grid energy tariff. However, the CAPEX model has the benefit for customers to own the system and usually offers lower tariffs as compared to the RESCO model.

Buying a solar system provides long-term savings and ownership benefits, while leasing requires lower upfront investment.

Generation of electricity using rooftop solar allows for in-house consumption of electricity and potential revenue in the case when excess is exported to the grid. To be able to account for the consumption from rooftop solar, grid and export of excess to the grid; different metering mechanisms (e.g.: Net metering, Gross metering) are employed. The detailed account for the consumption and export is shared with the customer through a billing statement depending on the billing cycle of respective states.

One of the critical aspects of utilising the rooftop solar system is the upkeep of the operation and maintenance activities. The activities range from supervising operation related parameters for optimum generation of electricity to replacement of spares and maintaining a cleaning schedule. There are multiple models that can be employed for operation and maintenance of the system, such as self-O&M, where the owner takes the responsibility to maintain the installed system. Another option could be contracting the operation and maintenance of the solar system to an external company, based on the terms of agreement. According to CERC, the O&M cost can be estimated to be 1.4% of the capital cost for the first year with an annual increase of 3.84% from the second year (this is subject to change with annual revision). Maintenance costs vary based on system size and location. For example, cleaning a 5KW solar panel system costs approximately ₹1,000 per session. Additional visit charges may apply depending on the installation location. Regular cleaning and maintenance are recommended to ensure optimal performance and maximum power generation.